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Actuarial Council

The FRC seeks to promote high quality actuarial practice and the integrity, competence and transparency of the actuarial profession for the benefit of all those who rely on actuarial advice.

Following the Morris Review of the Actuarial Profession, published in March 2005, HM Treasury asked the Financial Reporting Council (FRC) to take on responsibility for oversight of the UK Actuarial Profession and the independent setting of technical actuarial standards. This latter task was the remit of the Board for Actuarial Standards until 2 July 2012 when responsibility was passed to the FRC.

The FRC Board and its Committees are advised by an Actuarial Council. The Actuarial Council aims to be a leading authority on actuarial matters, widely respected by the FRC’s stakeholders for the depth and objectivity of its views and for the quality of its engagement with stakeholders. The Actuarial Council seeks to discharge its responsibilities in a manner which commands respect and carries weight so that actuarial matters are fully and appropriately considered by the FRC Board and its Committees. 

The FRC relies on the advice of its Councils, the membership of which comprises experienced individuals who are highly respected by the FRC’s wide range of stakeholders. Council members have a range of experience: some with technical expertise and others as users, for example from an investor or corporate background. The Council comprises the Chair and up to 14 members, up to half of the membership shall be practising members of the actuarial profession; the remainder are 'users' of actuarial information and other stakeholders.

The Council is chaired by John Coomber, who is a non-executive Director of the FRC Board.

Actuarial Council Terms of Reference

1 Role  

1.1 The role of the Council is advisory to the FRC Executive on the development and maintenance of high quality, effective and proportionate Standards, Guidance and Statements of Practice for technical actuarial work. In so doing the Council will:

  • Provide perspective on the broader landscape affecting the quality of actuarial work;

  • Advise on the identification of current, emerging and potential risks to the quality of actuarial work and to the FRC’s responsibilities and strategic objectives in connection with actuarial work.

  • Identify opportunities to promote the quality of actuarial work through Standards, Guidance and Statements of Practice for technical actuarial work; and

  • Provide advice on technical actuarial matters.  

1.2  Advice will be sought by and provided to the FRC Executive. The Board or its Committees may also seek input or advice from the Council on other matters as they see fit.

1.3  The Chair will report directly to the Board any material difference of view between the Council and the FRC Executive of which, in his/her judgement, the Board is not fully aware and, at his / her discretion, report any material concerns in relation to the performance, terms of reference or effectiveness of the Council which, in his/her judgement, have not been resolved through the annual wider Board effectiveness review process.

2  Membership

The Board shall appoint the Council Chair. The Codes & Standards Committee shall appoint up to 14 other Council members.
 
No more than half of the members of the Council shall be practising members of the actuarial profession.

3  Quorum

The quorum for Council meetings shall be sixty percent of the members.

4  Secretary

The Company Secretary or his / her nominee shall act as Secretary of the Council (the Secretary).

5  Frequency of Meetings

The Council shall usually meet four times a year with other meetings called as necessary dependent on the work plan. Ad hoc meetings of sub-groups of the Council may be convened as necessary.

6  Attendance at Meetings

Only members of the Council shall have the right to attend Council meetings. However, the relevant executive director and policy director will normally be invited to attend all Council meetings and other individuals may be invited to attend all or part of any meeting as and when appropriate.

7  Notice of Meetings

Unless otherwise agreed, notice of each meeting confirming the venue, time and date, together with an agenda of items to be discussed and supporting papers, shall be made available to each member of the Council and any other person required to attend, no later than 5 working days before the date of the meeting.

8  Minutes of Meetings

The Secretary shall minute the proceedings of all meetings of the Council, including recording the names of those present and in attendance. Minutes of Council meetings shall be circulated to all members of the Council and, following approval, published on the FRC website.

9  Responsibilities

The Council shall advise the FRC Executive on:

  1. The development of the FRC Strategy and Annual Plan in so far as it is relevant to the role of the Council.
  2. The development of the FRC Executive’s plan for Standards, Guidance and Statements of Practice for technical actuarial work including in relation to its contribution to the FRC Strategy and Annual Plan and on the implementation of the work plan as endorsed by the Board.
  3. The development and maintenance of Standards, Guidance and Statements of Practice for technical actuarial work.
  4. Proposed developments to international equivalents.
  5. The key messages to be included in FRC reports on its activities in relation to actuarial matters in so far as they are relevant to the role of the Council.
  6. The recognition of SOP making bodies and the approval of certain FRC statements on SOPs.
  7. Matters concerning the general effectiveness of the Council in performing its above responsibilities.
  8. Any other matters as requested by the Executive or the Board or its Committees.

10  Other

10.1     Each year, the FRC Executive shall report to the Board on its plan for Standards, Guidance and Statements of Practice for technical actuarial work and seek the Board’s endorsement of those plans. The Executive’s report shall include the advice of the Council.

10.2     Council performance and its terms of reference] shall be reviewed annually, including through consultation with the Council, as part of the wider Board effectiveness review process.  

10.3     The FRC Executive may appoint ad hoc groups to advise on specific issues. The members of those groups may include members of the Council. The Executive shall annually review the continuing need for any such appointed groups. 
 
Approved by the FRC Board with effect from 1 July 2018.
 

Actuarial Council Minutes 2018-2019
18 January 2018 (PDF)
8 February 2018 (PDF)
8 May 2018 (PDF)
5 June 2018
17 September 2018
15 October 2018
20 November 2018